The Qualifying Employment in Maritime Activities and the Servicing of Offshore Oil and Gas Industry Activities (Personal Tax) Rules, 2018 is a programme that allows senior employees engaged within the maritime and oil and gas industry to benefit from a flat rate of 15% tax on employment income derived in respect of work or duties carried out in Malta.
Main Applicable Conditions
- be employed to fill a senior position (or to perform equivalent activities) and be in possession of professional qualifications or acceptable professional experience;
- be entitled to remuneration of at least €65,000 for basis year 2018 (exclusive of the annual value of any fringe benefits) in terms of a contract of employment;
- reside in accommodation regarded as normal for a comparable family in Malta;
- not be domiciled in Malta;
- be in possession of a valid travel document;
- be in possession of adequate health insurance;
- not benefit under any alternative incentives available in Malta;
- has signed a Qualifying Contract of Employment.
Qualifying Contract of Employment
- derives employment income subject to income tax in Malta;
- has an employment contract subject to the laws of Malta and proves to the satisfaction of the Authority for Transport in Malta that the contract is drawn up for exercising genuine and effective work in Malta;
- proves to the satisfaction of the Authority for Transport in Malta that he is in possession of professional qualifications and has professional experience;
- fully discloses for tax purposes and declares emoluments received in respect of income from a qualifying contract of employment and all income received from a person related to his employer paying out income from a qualifying contract as chargeable to tax in Malta;
- proves to the satisfaction of the Authority for Transport in Malta that he performs activities of an Eligible Employment and Office.
Eligible office is an employment included in the list below and which is held with any of the following:
- any undertaking holding a Document of Compliance (DOC) issued in terms of the International Safety Management (ISM) Code or a Seafarer Recruitment and Placement Services Licence issued in terms of the Maritime Labour Convention, 2006; or
- any undertaking engaging the particular individual for work on board any ship, excluding ships operating on regular services as well as ships whose use or operation requires certification in terms of the Commercial Vessels Regulations and which are berthed or anchored within the territorial waters of Malta or any port in Malta for at least a period of one month over a calendar year; or
- any undertaking which carries on mainly a trader business consisting in the Servicing of the offshore oil and gas and ancillary services industry.
Eligible Employment and Offices, includes the following positions:
- Maritime Activities
- Chief Executive Officer
- Chief Operations Officer
- Managing Director
- Chief Financial Officer
- General Manager
- Crewing Manager
- Technical Manager
- Technical Ship Superintendent
- Designated Person Ashore
- Master
- Chief Mate
- Second Officer
- Chief Engineer
- Second Engineer
- Chef
Servicing of the Offshore Oil and Gas and Ancillary Services Industry Activities
- Chief Executive Officer
- Chief Operating Officer
- Head of Training Academy (which Academy must be certified byan international accreditation institution).
This option is available for EEA and Swiss nationals, for a consecutive period of five years commencing from the first year of assessment in which that person is first liable to tax under these rules and with respect to third-country nationals, for a consecutive period of four years. Provided that one shall be eligible, upon application, for a one-time extension of five years or four years respectively.
Application Process
Applications are submitted to the Authority for Transport in Malta. GVZH is fully licenced to submit applications in terms of the programme.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
